Special report-31-july-epic-research-2018

Special Report 31-July-2018

Global markets at a glance A broad sell-off of technology stocks pushed the three major U.S. stock indexes lower on Monday, with the Nasdaq Composite posting its third consecutive loss of more than 1 percent for the first time in three years just days after hitting a record high.The technology index tumbled 1.8 percent as investors looked to other sectors or took profits ahead of the volatile midterm election season.Shares of Facebook Inc and Netflix Inc slid 2.2 percent and 5.7 percent, respectively, pulling their fellow so-called FAANG stocks lower. Other FAANG stocks include Apple Inc , Amazon.com , and Google parent Alphabet Inc .

Asian share markets weakened on Tuesday, taking cues from the rout in global technology shares while the yen edged higher ahead of the Bank of Japan's rate review, at which it could flag a shift away from its massive monetary stimulus.Japan's Nikkei fell 0.5 percent. South Korea's Kospi index dipped 0.1 percent despite solid second-quarter results from Samsung Electronics which posted a 5.7 percent rise in profit.MSCI's broadest index of Asia-Pacific shares outside Japan was mostly unchanged at 543.23 as were Australian shares .

Previous day Roundup The Nifty50, after opening at fresh record high, erased gains after first hour of trade but managed to recoup those losses and remained higher for major part of the session on Monday.The index continued its positive momentum, forming a 'Hanging Man' kind of pattern on the daily candlestick charts indicating that there could be some consolidation or correction going ahead.

The Nifty50 after opening at fresh record high of 11,296.65 hit 10,300-mark for the first time but corrected after first hour of trade to hit day's low of 11,261.45. The index managed to recoup those losses in late morning trade and hit a new intraday high of 11,328.10.India VIX moved up by 1.52 percent to 12.49. Overall lower volatility suggests bulls are holding the tight grip on the market .

Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[30.10pts], Consumption[45.40pts],PSE[45.10pts],CPSE [23.50pts],Energy[217.70pts],FMCG[87.25pts],Auto [5 0 .25 pts],P harm a[7 6 .5 5 pts],IT[ -9 7 .35 pts],M etal [22.60pts],Realty[0.50 pts], Fin Serv sector[47.85pts].

World Indices Index

Value

% Change

25,306.83

-0.57

S&P500

2,804.75

+0.05

NASDAQ FTSE100

7,199.00 7,700.85

-0.03 -0.01

22,448.59 28,572.40

-0.43 -0.56

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

Bharti Airtel

383.25

18.55

5.09

ICICI Bank

307.35

14.15

4.83

SBI

297.40

10.65

3.71

58.40

2.05

3.64

569.65

16.40

2.96

CMP

Change

% Chg

HCL Tech Infosys HDFC Bank Bajaj Finance

947.15 1,351.00 2,169.90 2,678.00

-16.30 -22.45 -32.25 -35.70

-1.69 -1.63 -1.46 -1.32

Larsen

1,295.35

-16.10

-1.23

Idea Cellular Axis Bank

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

52.35

5.2

9.93

1118.5

-14.5

-1.3

BANKBEES

2808.01

31.69

1.13

BHARATFIN

1205.75

-5.75

-0.48

CIGNITITEC

461.05

15.95

3.46

ADANIGREEN ASTRAL

Stocks at 52 Week’s LOW Symbol

ADHUNIK ANKITMETAL APOLLOHOSP BILPOWER BLUEBLENDS

Prev. Close

Change

%Chg

3.2 0.55 933.85 0.6 7.65

0.15 0 2.05 0.05 0.35

4.69 0 0.22 8.33 4.58

Indian Indices Company

CMP

Change

% Chg

NIFTY

11319.50

41.10

0.36

SENSEX

37494.40

157.55

0.42

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Special Report 31-July-2018

RECOMMENDATIONS [FUTURE] 1.JSWSTEEL [FUTURE ] In the earlier trading session this stock surged 1.45% with good strength and today it can also contunue its movement, this particular counter has a resistance level of 329.50 above this a chance of breakout can be grabbed, so we advice to buy jswsteel future around the levels of 330-331 for the targets of 335-340 with a stoploss below of 328.

2.PTC [FUTURE]

From the daily chart its clear that the particular script is moving in a continuos uptrend and has got a support at its important level of 78.60, it had closed above its previous resistance level of 79.70 today if the market shows strength then it is surly a buy so we advice to make a long position in ptc future around 79-79.30 tgt 85-90 sl below 76.

STOCK RECOMMENDATION [CASH] PIDILITIND [CASH] The particular conter is getting a rejection from its crucial resistance level around 1137, even due to the bullish market it is unable to sustain above this level, in the earlier trading session the closing bearish candle overshadowed the previous bull indecision candle which is a clear sign of reversal so we advice to sell pidilitind around 1123-1120 tgt 1120-1100 sl above 1135.

MACRO NEW  Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 4.5 points or 0.04 percent. Nifty futures were trading around 11,339level on the Singaporean Exchange.  rowth in China’s services industry in July moderated for the first time in five months, an official survey showed on Tuesday, a sign activity is slowing in a major part of the world’s second largest economy.The official non-manufacturing Purchasing Managers’ Index (PMI) fell to 54.0 from 55.0 in June, well above the 50-point mark that separates growth from contraction. The services sector accounts for more than half of China’s economy, with rising wages giving Chinese consumers more spending power.  China offered Britain talks on a post-Brexit free trade deal on Monday, reaching out to London as Beijing remains mired in an increasingly bitter trade war with Washington, even as a senior Chinese diplomat reiterated its door remained open for dialogue.China has been looking for allies in its fight with the United States, initiated by the Trump administration, which says China's high-tech industries have stolen intellectual property from American firms and demanded Beijing act to buy more US products to reduce a USD 350 billion trade surplus.

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Special Report 31-July-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest



Dr Reddy's Laboratories clarified that AstraZeneca has filed lawsuit in Delhi HC



HDFC Bank: The board approved floor price for QIP at Rs 2,179.13 per share. The bank proposed QIP to raise up to Rs 15,500 crore.

NIFTY

CE

11,500

70

82,182

28,06,800

NIFTY

CE

11,400 111.95

78,321

22,10,775 NIFTY FUTURE

NIFTY

CE

11,300 164.85

68,702

18,16,725

BANKNIFTY

CE

27,600 275.55

68,324

1,99,760

RELIANCE

CE

1,200

14

9,654

20,87,000

RELIANCE

CE

1,160

28

8,248

16,70,000

ICICIBANK

CE

310

8.6

7,710

21,83,500

ICICIBANK

CE

300

14

7,325

53,37,750

MARUTIACTIVE PUT CE OPTION 9,000 111.5 5,823 MOST Symbol

Optio Strike n Price Type

BANKNIFTY

2,83,500

LTP

Traded Volume (Contracts)

PE

27,500 44.15

2,10,080

BANKNIFTY

PE

27,600

62

1,64,272

BANKNIFTY

PE

27,400 32.45

1,56,976

BANKNIFTY

PE

27,300

24

1,24,406

RELIANCE

PE

1,100

11.3

6,323

ICICIBANK

PE

280

2.55

5,677

ICICIBANK

PE

290

4.1

5,654

RELIANCE

PE

1,120

16.3

5,622

Open Interest

8,85,080 The Nifty future after opening at fresh record high erased gains after first hour of trade but managed to 6,78,600 recoup those losses and remained higher for major part 6,39,040 of the session on Monday. The index continued its 5,56,680 positive momentum, forming Hanging Man kind of pattern on the daily candlestick charts which indicated 22,06,000 that there could be some consolidation or correction 60,19,750 going ahead but it requires some confirmation here we 36,08,000 advice to buy on decline buy around 11280-90 with stop loss of 11200 for the target of 11400-11600.

14,69,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

29620

2629.18

21064

1917.62

INDEX OPTIONS

353166

33489.38

355714

STOCK FUTURES

192125

12830.53

STOCK OPTIONS

84389

6203.95

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

230434

19823.73

711.5602

33686.60

538685

46827.41

-197.2175

182325

12173.26

1052268

76744.28

657.2716

82458

6079.48

49130

3675.08

124.466 1296.0803

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11369.00

11344.00

11302.00

11277.00

11235.00

BANKNIFTY

28040.00

27941.00

27774.00

27675.00

27508.00

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Special Report 31-July-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD AUG FUT ABOVE 29800 TGT 29900 30100 SL BELOW 29700 SELL GOLD AUG FUT BELOW 29680 TGT 29580 29380 SL ABOVE 29780

SILVER TRADING STRATEGY: BUY SILVER SEP FUT ABOVE 38400 TGT 38600 38900 SL BELOW 38200 SELL SILVER SEP FUT BELOW 38200 TGT 38000 37700 SL ABOVE 38400

COMMODITY ROUNDUP Gold is widely advocated by financial analysts as one of the major safe harbors for worried investors as the world has to move from an international monetary system dominated by the US dollar to a multi-polar currency system.Gold will remain a crucial component of diversified portfolios, as a hedge against potential corrections across asset classes. It is liquid and has neither credit nor default risk. The inescapable conclusion is that the only viable alternative asset for official reserves is physical gold, as it alone has the requisite liquidity, correlation characteristics, and trust. Central banks seeking true risk diversification or insurance, therefore, should increase their gold holdings.Gold is almost never a ‘buy’ when it is both loved by the gold “community” and the cyclical backdrop is positive. It is almost always a ‘buy’ when it is hated by the gold “community” and the cyclical backdrop is counter, bleak and/or not inflationary.Data from the Commodity Futures Trading Commission showed speculators significantly expanded net short positions — bets the price will fall — to 26,400 contracts in the week to July 17, not far off the late 2015 record high. Extreme positioning is often seen as a contrarian indicator. Speculative market participants often behave in a very cyclical fashion, and in the past such extreme positioning has frequently been an indicator of a pronounced counter-movement in the near future. Very negative market positioning at the end of 2015 was followed by a surge in the gold price of roughly $300 in the first half of 2016.

Oil prices rose for a second day on Wednesday after industry group data showed U.S. crude inventories fell more than expected last week, easing worries about oversupply that had dragged on markets in recent sessions.Brent crude LCOc1 was up 29 cents, or 0.4 percent, at $73.73 a barrel by 0035 GMT. The global benchmark settled 38 cents higher at $73.44 a barrel on Tuesday, after climbing as high as $74.U.S. West Texas Intermediate CLc1 rose 22 cents, or 0.3 percent, to $68.74, having settled the previous session up 63 cents, or nearly 1 percent.Reports that China will increase infrastructure spending also helped reduce concerns that U.S.-China trade tensions will dent the country's demand for oil. crude and fuel stockpiles dropped more than expected last week, industry group the American Petroleum Institute said on Tuesday.Crude inventories fell by 3.2 million barrels in the week to July 20 to 407.6 million barrels, compared with analyst expectations for a decrease of 2.3 million barrels.Distillate fuels stockpiles, which include diesel and heating oil, fell by 1.3 million barrels, compared with expectations for a 207,000-barrel gain.

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Special Report 31-July-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9490 TGT 9550 9650 SL BELOW 9400 SELL GUARGUM OCT FUT BELOW 9360 TGT 9300 9100 SL ABOVE 9450

NCDEX INDICES Index

Value

% Change

Barley Castor Seed Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT

1610 4620 4163 5170 1855 4338

0.12 -0.47 -0.02 1.43 1.15 1.51

20480

3.38

4180 3359 7320

0.07 -0.18 0.36

Jeera Mustardseed Soy Bean Turmeric

USDA forecasts that China's soybean imports will increase to 100.5 MMT in MY18/19 from the estimated 97 MMT in MY17/18. This forecast, is 2.5 MMT lower than USDA's June forecast. Due to the combination of the moderate increase in domestic soybean production, together with the slowdown in growth of soybean meal use, a net growth of 3.5 MMT of soybean imports in MY18/19 is expected to meet the Chinese demand growth for protein meals.

DHANIYA BUY DHANIYA AUG FUT ABOVE 5250 TGT 5300 5400 SL BELOW 5230 SELL DHANIYA AUG FUT BELOW 5140 TGT 5080 5000 SL ABOVE 5200

U.S. soybean exports to China continue to face strong competition from soybean exports from South America.

Excessive soybean stocks and a fall in the soybean price in Brazil attributed to the 14.2 MMT of Brazilian soybean exports to China in the first half of MY17/18. This is significantly higher than the 5.2 MMT during the same period in MY16/17.

Despite China's net growth of over 2 MMT of soybean imports in the first half of MY17/18, total soybean imports from the United States fell to 24.4 MMT in this period, down from the 31.6 MMT in the previous year. Chinese importers note that Brazilian soybeans have a one percent higher protein content than U.S. soybeans. Importers were previously willing to pay a slightly higher price for soybeans with a higher protein content, but with the drop in the price of Brazilian soybeans, exports are now surging As per official data, Ukraine supplied some 1 MMT of wheat to foreign markets in May 2017/18. This was down 10% from April (1.1 MMT) but up 2% from May 2016/17 (986.8 KMT). In July-May 2017/18, wheat exports totaled 16.3 MMT, or 3% less than in the same period in MY 2016/17.

Ukrainian wheat shipments to the European Union and Indonesia grew substantially in the current season. In the period under review, exports to Indonesia increased to 2.1 MMT that was 31% more than in the whole of MY 2016/17.

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Special Report 31-July-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.8975 Yen

62.0900

Euro

80.6850 GBP

90.5200

USD/INR BUY USDINR ABOVE 69.00 TGT 69.30/69.60 SL BELOW 68.70 SELL USDINR BELOW 68.50 TGT 68.20/67.90 SL ABOVE 68.80

GBP/INR BUY GBPINR ABOVE 90.60 TGT 90.90/91.20 SL BELOW 90.30 SELL GBPINR BELOW 89.60 TGT 89.30/89.00 SL ABOVE 89.90

The rupee retreated from early high levels to close down with a modest loss of 2 paise at 68.86 against the US currency on stray dollar demand from importers. The home currency initially reacted positively to the GST Council's decision to cut rates on several items and also tracking broad weakness in the dollar.

It touched a high of 68.65 in early trade before slipping back toward the tail-end trade.

Consistent unwinding by foreign investors on growing expectations of Fed rate hike kept home currency under pressure, a dealer said.

Overall, forex sentiment remained fragile in the face macro challenges coupled with tense trade relations between the US and major economies and expectations that the Federal Reserve will raise interest rates further this year. The Indian rupee had hit its life-time low of 69.13 a dollar last Friday.

Oil prices too inched up today after tensions worsened between Iran and the US. The Brent crude rising 66 cents to USD 73.73 per barrel and West Texas Intermediate gaining 27 cents to USD 68.53 per barrel. Foreign investors remained net investors in stock markets as they bought equities worth Rs 259 crore on net basis today.

Domestic bourses maintained their bullish momentum for the second-straight session with the flagship BSE Sensex ending at a historic closing high driven by optimistic corporate earnings as well as strong buying from investors.

The rupee resumed higher at 68.70 against weekend close of 68.84 at the Interbank Foreign Exchange (forex) market on increased selling of the American currency by exporters and banks. The local currency dropped to a low of 68.87 before settling at 68.86, showing a loss of 2 paise.

The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 68.7040 and for the euro at 80.5619. The bond market also witnessed fresh selling and the 10-year benchmark yield end at higher at 7.81 per cent. The bond market also witnessed fresh selling and the 10-year benchmark yield end at higher at 7.81 per cent. In the cross currency trade, the rupee continued to lose ground against the pound sterling to finish at 90.50 per pound from 89.80 and dropped against the euro to end at 80.68 as compared to 80.25. It also slumped further against the Japanse yen to close at 62.00 per 100 yens from 61.26 earlier.

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Special Report 31-July-2018

Date

Commodity/ Currency Pairs

30/07/18

NCDEX DHANIYA

AUG

BUY

30/07/18

NCDEX DHANIYA

AUG

30/07/18

NCDEX GUARGUM5

30/07/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5180

5240 5340

5100

TGT HIT

SELL

4980

4900 4800

5060

NOT EXECUTED

OCT

BUY

9150

9370 9520

9170

TGT HIT

NCDEX GUARGUM5

OCT

SELL

9150

9250 9400

9050

NOT EXECUTED

30/07/18

MCX GOLD

AUG

BUY

29900

30000 30200

29800

NOT EXECUTED

30/07/18

MCX GOLD

AUG

SELL

29780

29680 29480

29880

OPEN

30/07/18

MCX SILVER

SEP

BUY

38500

38700 39000

30/07/18

MCX SILVER

SEP

SELL

38200

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

30/07/18

NIFTY

FUTURE

BUY

38300

NOT EXECUTED

38000 37700

38400

TGT HIT

Target

Stop Loss

Remark

11280-90

11400-11600

11200

OPEN

75-80

69

OPEN

1155-1166

1133

TGT HIT

64-68

58

OPEN

Entry Level

30/07/18

NBCC

FUTURE

SELL

71.60-72

30/07/18

RELIANCE

FUTURE

BUY

1144-46

30/07/18

DAAWAT

CASH

BUY

60.80-61.50

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Special Report 31-July-2018

NEXT WEEK'S MAJOR U.S. ECONOMIC REPORTS TIME (ET)

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

MONDAY, AUG. 6 11 am

Survey of consumer expectations

July TUESDAY, AUG. 7

10 am

Job openings

June

6.6 mln

3 pm

Consumer credit

June

$25 bln

WEDNESDAY, AUG. 8 None scheduled THURSDAY, AUG. 9

THURSDAY, AUG. 9

THURSDA Y, AUG. 9

THURSDAY, AUG. 9

THURSDAY, AUG. 9

THURSDAY, AUG. 9

8:30 am 8:30 am

Producer price index

July

0.3%

10 am

Wholesale inventories

June

0.6%

FRIDAY, AUG. 10

FRIDAY, AUG. 10

FRIDAY, AUG. 10

8:30 am

Consumer price index

July

FRIDAY, AUG. 10

FRIDAY, AUG. 10

FRIDAY, AUG. 10 0.1%

8:30 am 2 pm

Federal budget

8:30 am

Gross domestic product

July Q2 Disclaimer

4.0%

2.0%

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